Smallholder Agribusiness Partnership (SAP) Programme (hereafter refered as SAPP) is a six-year project with a total cost of USD 105 Million. The Government of Sri Lanka and the International Fund for Agricultural Development (IFAD) and private sector (Agribusiness companies), smallholder farmers, Participatory Financial Institutions (PFIs) has jointly funded the programme. The total investment and recurrent costs over the six-year implementation period, including physical and price contingences, is estimated at USD 105 million (LKR 17 billion), including IFAD financing (blend terms) of USD 54.4 million. The contribution by the Government of Sri Lanka amounts to USD 19.3 million; this however comprises USD 0.7 million in the form of forgone taxes and duties, and USD 18.5 million in reflows from previous IFAD-financed lines of credit.
The overall goal of SAP is to contribute to Sri Lanka’s smallholders’ poverty reduction and competitiveness. The programme development objective is to sustainably increase the income and quality of diet of (initially) 57,500 smallholder households involved in commercially oriented production and marketing systems.
The objective of the programme is to sustainably increase the income and quality of diet of 57500 smallholder households involved in commercially oriented production and marketing systems ; aiming at Increasing the incomes of the beneficiaries participating in the marketing chain development component by 20% -30% on an average through a combination of improved farm gate prices, improved on-farm productivity and participation in upstream value adding process, and 57,500-supported household under SAPP have access to rural financial services in a sustainable manner and at affordable rates.